as its name suggests, a binding offer is an enforceable contract for the sale of real estate. if the parties are unable to agree on the purchase and sale agreement, then this agreement shall become the binding agreement between the paries. the parties agree to negotiate with each other in good faith regarding the terms and conditions of the purchase and sale agreement, if, notwithstanding such good faith negotiations, a purchase and sale agreement has not been executed, then this offer shall become null and void.

in real estate acceptance is applied in real estate transactions in the buying or selling of property when one individual makes an offer to purchase a house and the other decides to accept that offer or not. agreeing to an offer with the expectation of possessing it or having rights to it is the meaning of acceptance in real estate. offer and acceptance in the real estate world are the two requirements of a contract forming mutual consent as in any other field where an exchange is made. for a real estate transaction to take place, we must have an offer from the party interested in making the purchase and an acceptance of that offer from the party that is selling. now, as we talk about the acceptance of the offer we have to point out what can stop an acceptance and a sale from finalizing. revocation is a detrimental element to the real estate transactions and it allows any party that made an offer to withdraw that offer before an acceptance had been forwarded.

after a seller accepts a buyer’s offer to purchase a property, it’s time to make it official, in the form of a real estate contract. it means that the sellers can begin planning to move out, while the buyers can work with their agent, lender, and attorney get their ducks in a row for closing. of course, just how binding the contract is depends on the details of the contract itself. typically a buyer’s attorney will try to build as many contingencies as possible into a contract  to keep the client from being tied down if something unexpected comes up. one of the most common reasons a real estate deal falls through is because of financing—or a buyer’s inability to get financing from their lender. if the home appraises for lower than the purchase price, it usually means the lender won’t be able to provide the buyers with as much financing as they had hoped. if contingencies aren’t met and the buyers want to walk away from the deal, they can typically get back their funds held in escrow, like earnest money.